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hedging_recommend

Read-onlyIdempotent

Compare protective puts, collars, and inverse hedges to rank cost-effective hedges for a given position.

Instructions

Rank cheapest effective hedges for a given position. Compares protective puts, collars, inverse hedges.

Use when agents need to hedge an existing position. Provide position_type (long_stock/short_stock/long_crypto/long_options), position_value, asset_price, volatility, time_horizon_days, max_hedge_cost_pct. Returns: ranked hedges (protective put, collar, futures short, partial hedge) each with cost, protection level, affordability flag, and max loss after hedge. PAID ONLY — no free tier.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
rNoRisk-free rate
volatilityYesAnnualized volatility
asset_priceYesCurrent spot price
position_typeYeslong_stock | short_stock | long_crypto | long_options
position_valueYesCurrent dollar value of position
time_horizon_daysNoHedge time horizon in days
max_hedge_cost_pctNoMax hedge cost as fraction of position (0.05 = 5%)
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already set readOnlyHint=true and idempotentHint=true. Description adds critical behavioral info 'PAID ONLY — no free tier' and mentions return structure, without contradicting annotations.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Two paragraphs with front-loaded purpose and succinct usage instructions. No filler or redundancy.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness4/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

Given rich schema, clear annotations, and no output schema, the description adequately explains purpose, usage, required inputs, and paid status, making it complete for an agent.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is 100%. Description restates parameter names and types but does not add new semantics beyond what the schema's descriptions already provide.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

Description starts with 'Rank cheapest effective hedges for a given position' and lists specific hedge types, clearly distinguishing this tool from sibling tools like options_strategy or risk_position-size.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines4/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Explicitly states 'Use when agents need to hedge an existing position' and lists required parameters, providing clear context for when to invoke the tool.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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